In an urgent move, Chilean officials are working to save the country’s sole steel mill from closing due to the flood of low-cost Chinese steel.
This effort puts the spotlight on Chile’s dedication to free trade.
The Lower House of Congress has already passed resolutions calling on President Gabriel Boric to bolster the beleaguered steel sector.
Economy Minister Nicolás Grau emphasized the possibility of implementing stricter anti-dumping actions and appealed to mining firms to consider the steel crisis seriously.
The concern arose after Cap SA announced plans to shut down its mills, claiming the current anti-dumping measures were inadequate.
Chile’s steel industry, a small player in a global market dominated by China, is at a crossroads. Raising tariffs could safeguard 20,000 jobs and ensure the mills’ survival.
Yet, this strategy might conflict with Chile‘s free-trade policies and strain relations with China, a key trade partner.
In addition, the issue extends beyond Chile. Other Latin American countries, including Brazil and Colombia, also grapple with the challenge of cheap Chinese imports.
This influx, spurred by China’s reduced domestic demand and significant tariffs in other markets, threatens local steel producers.
Steel’s role, though modest in the broader economy, is deemed critical for infrastructure and manufacturing.
“A steelworker’s protest underlines the national sentiment,” declared Jorge González, capturing the local industry’s plea for government intervention.
He emphasized, “President Boric, your commitment is to the Chilean people, not to the Chinese.”